Real Estate News 11/19/18

REAL ESTATE NEWS
 Financial experts are growing concerned by how millennials’ lack of homeownership will impact them financially when they retire. "Homeownership is one of the touchstones of being prepared for retirement," Tamera Sims, research scientist at the Stanford Center on Longevity, told CNBC. "Buying a home at age 50 or 60 isn't going to do you much good in funding a 30-year retirement." But young adults are “not able to hit the [housing] market at the same age as their parents,” Sims says. Researchers found homeownership is falling the most among people under the age of 30 compared to previous generations. The homeownership rate among early millennials (those born between 1980 and 1984) at age 30 is 35.8 percent, according to the Stanford Center on Longevity. For comparison, the rate of homeownership among baby boomers at age 30 was 48.3 percent. Young adults are delaying marriage and having children and are loaded with student debt, all factors for their slow start at homeownership compared to previous generations. In 1960, the average age for men and women to get married was in their early 20s. The median age nowadays has slid closer to 30. A study in 2013 from the Urban Institute found that if a person delays buying a home to age 40 instead of age 30, that alone could result in a $42,000 loss in home equity by the time that person reaches age 60. Source: CNBC

The inventory crisis which is hampering home sales and growing demand from potential first-time buyers is starting to see improvement. Realtor.com’s September housing report shows an 8% rise in new listings year-over-year with inventory down just 0.2% from a year earlier. The year-over-year percentage rise in new listings was the highest since 2013. "After years of record-breaking inventory declines, September's almost flat inventory signals a big change in the real estate market," said Danielle Hale, chief economist for realtor.com® -- "Would-be buyers who had been waiting for a bigger selection of homes for sale may finally see more listings materialize.” The US median home price was up 7% year-over-year to $295,000, marking a slower pace than the 10% annual rise of a year earlier. The 465,000 newly-listed homes in September were, on average, 8% cheaper ($25,000) and 10% smaller (200 sq. ft.) than existing inventory in the market. Source: realtor.com®

The US median home price increased just 4.8% in the third quarter of 2018, the slowest pace since the second quarter of 2016. The median sales price of a single-family or condo home in Q3 2018 was $256,000, 1% higher than in the previous three months. Almost half (74) of the 150 metros analyzed by ATTOM Data Solutions saw a slower rate of appreciation than a year earlier. The data showed that there were still plenty of markets posting double-digit gains, despite the overall slow-down. The average home seller in Q3 2018 gained $61,232 since purchase; a 32.3% return on the original purchase price. Distressed sales accounted for 11.6% of all US single family home and condo sales in Q3 2018, up from an 11-year low of 11.2% in the previous quarter but still down from 12.8% in Q3 2017. Source: ATTOM Data Solutions 

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